Ebay snaps up a deal with Snapdeal

Com­pany wants foothold in In­dia

Hindustan Times (Patna) - - NATION - Mahua Venkatesh mahua.venkatesh@hin­dus­tan­times.com

NEW DELHI: eBay Inc, the world’s largest auc­tion and shop­ping por­tal, is do­ing some shop­ping of its own in In­dia.

It is ne­go­ti­at­ing to pick up a sig­nif­i­cant stake in on­line re­tailer snapdeal.com — a sign of the grow­ing clam­our among multi­na­tional giants to gain a big­ger foothold in one of the fastest grow­ing e-com­merce mar­kets.

“Ebay is look­ing to make a strate­gic in­vest­ment in Snapdeal, a move that is ex­pected to help both sides,” a source told HT.

Snapdeal, which has 18 mil­lion reg­is­tered users and trans­acts 25,000 units a day, was val­ued at about R1,000 crore dur- ing a 2011 deal. It is tar­get­ing to earn R600 crore in rev­enues this year — a 20% jump over last year.

CEO Ku­nal Bahl, a 29-yearold Whar­ton grad­u­ate, set up snapdeal.com in Fe­bru­ary 2010, along with school buddy Ro­hit Bansal, an IIT Delhi alum­nus.

De­tails of the trans­ac­tion are still be­ing worked out, but sources said it will likely be car­ried out through eBay’s In­dian arm and struc­tured in a man­ner that it does not vi­o­late the cur­rent norms pro­hibit­ing for­eign in­vest­ment in on­line re­tail­ers.

Bahl did not re­spond to queries, and a com­pany spokesper­son re­fused to com­ment. “We don’t com­ment on ru­mours or spec­u­la­tion,” Deepa Thomas, eBay In­dia spokesper­son, said.

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